Branding is never an easy story, so many businesses hesitate and delay implementing their branding strategy. But the market that you participate in is already "red" and your product is not much different from you, so not focusing on branding is like you are making it difficult for yourself.

1. Why does your business need branding?

At present, the flat world is no longer a concept used to predict the future, but the reality shows that the world is operating in a "borderless" order. The market economy along with the rapid development of science and technology has made it difficult for businesses to produce a product that is completely different, so to attract and convince customers, Branding is the only key.

Whether it is a large enterprise or an SME, branding plays an important role in determining the success and development of the business.

Branding helps large enterprises maintain market share, expand and expand markets while increasing power (over suppliers and distributors) and increasing long-term competitive advantage. As for SMEs, branding helps to expand the customer base, thereby boosting sales and becoming a big business.

2. Right time to start branding

Lifecycle of a business

First we need to learn through the stages of development of a business (business life cycle). A brand from its inception to its end will go through 4 stages:

Business life cycle diagram

Stage 1: Introduction. In this stage, the business has just been established, a business model, a business strategy has just been approved by the company's management, and the apparatus has just begun to operate. The characteristic of this stage is low sales, high costs and small profit margin and may lose if the company focuses on investing in branding.

Stage 2: Development. This is the beginning of growth, provided that the business strategy is effective, and the brand is focused on building. This period is characterized by high revenue growth, cost control thanks to increased sales volume, and positive profit.

Stage 3: Maturity. This is the period of prosperity, normally it takes a business 50 years to reach this stage but if there is an effective branding strategy, the time can be shortened to 5 to 10 years based on the strength of the company. push of the current connected-things economy. The characteristics of this stage are peak revenue, maximum profit and lowest cost.

Stage 4: Recession. There are many factors that can lead to the downfall of a business, but mainly due to outdated brand, does not capture the tastes of users and does not focus on refreshing the brand. This period is characterized by a rapid decline in revenue, while high maintenance costs lead to a sharp drop in profits.

Of course, this is a model with a descriptive nature, in fact it is possible that businesses will not go through all 4 stages above. A startup may not have passed stage 2 has had to stop the game, or there are many brands that have experienced decades of continuous growth, such as Iphone for example.

So at what stage do businesses need to start building a brand?

The sooner you start, the better

Yes, the fact that you start building your brand right from the start not only helps you quickly achieve the desired business results, but also creates many advantages. The advantages in terms of mood, vision and market acumen.

The main audience that Branding targets is none other than the market and consumers, and if every day you are interested in the market, think about your customers and "play" with up-to-date communication platforms. If you keep up with the latest trends, of course you will promptly come up with business strategies in line with the trend or you will not have to be passive when there is an economic downturn and not easily shaken by the fluctuations of the market. market.

Businesses build their brands as soon as possible

Not too early nor too late

So what if you're in another phase that hasn't built a brand yet? The answer is that any time is the best time to build a brand, even during a downturn.

First, if your brand is in the growth stage thanks to an effective business strategy focusing on distribution and sales or the market is in great demand. If you start to build a brand, you will be able to prevent existing and potential competitors because after all, the more "fatty" the market, the more "players". Branding will help you gain a lasting advantage and become the finisher in the competition.

Secondly, if the brand is in the mature stage, it is necessary to pay more attention to building the brand, and especially to know the market trend as the core foundation. An expensive lesson for never resting on victory is Nokia.

Third, if the brand is showing signs of "aging" and starting to decline, you can still start building a brand with a re-branding strategy.